DraftKings stock rating reiterated at Outperform by Bernstein

Bernstein SocGen Group has reiterated an Outperform rating on DraftKings Inc. (NASDAQ:DKNG) with a price target of $46.00, representing significant upside from the current price of $36.50. According to InvestingPro analysis, DraftKings appears undervalued based on its Fair Value metrics. The firm cited the company’s "compelling and differentiated investment case" within the online sports betting and iGaming landscape.

The research firm highlighted DraftKings’ enhanced live pricing capabilities as a core advantage, noting these were "significantly boosted by the SimpleBet acquisition." With revenue growing at 22.9% and analysts forecasting 32% growth for the coming year, Bernstein believes these capabilities position the company to capture substantial growth in US live betting while driving strong handle and profitability growth.

DraftKings has demonstrated "a unique ability to capitalize on event-driven engagement," according to the analysis. Bernstein expects this strength to drive accelerating live bettor acquisition as streaming platforms distribute more live events.

The firm also identified untapped potential in Jackpocket cross-sell opportunities to live betting customers. The integration of Jackpocket into DraftKings’ core platform was mentioned as a key upcoming catalyst for the company.

User profitability remains central to Bernstein’s positive outlook on DraftKings, with the firm projecting average revenue per user growth in the mid-single digits versus consensus estimates.

In other recent news, DraftKings Inc. announced a new 50-cent transaction fee for all mobile and online sports bets placed in Illinois, effective September 1, 2025. This decision comes in response to the Illinois state legislature’s recent sports wagering tax increases, which the company claims have more than tripled over the past two years. DraftKings CEO Jason Robins expressed concern about the impact of these tax hikes on the legal, regulated sports betting industry and criticized the state’s approach for potentially fueling illegal betting operations. Meanwhile, Citizens JMP analysts have lowered DraftKings’ stock price target to $50 from $54, while maintaining a Market Outperform rating. The analysts project a strong revenue growth of 39% year-over-year for DraftKings, driven by revenue optimization and product adjustments. Stifel analysts also reiterated their Buy rating with a $53 price target, highlighting strategic insights from recent meetings with DraftKings’ management. They emphasized the company’s focus on the total addressable market momentum and growth in proposition bets. Both analyst firms noted DraftKings’ strategic positioning and growth prospects amid the evolving regulatory landscape in Illinois.

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